DATA 2.0 LIMITED

Executive Summary

DATA 2.0 LIMITED, a young micro private company in software and data processing, shows initial financial stability with positive working capital and shareholder equity growth. While liquidity appears healthy, the company remains small with limited operational scale and capital, warranting careful cash flow management and strategic growth planning. Proactive financial controls and capital strengthening will be key to sustaining and improving its financial health as it matures.

DATA 2.0 LIMITED - Analysis Report

Company Number: 14705037

Analysis Date: 2025-07-20 18:55 UTC

Financial Health Assessment for DATA 2.0 LIMITED (FY ended 31-Dec-2024)

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1. Financial Health Score: B-

Explanation:
As a newly established micro private limited company, DATA 2.0 LIMITED shows early signs of financial stability with positive net current assets and growing equity. However, the scale of operations is very small, with limited financial history and minimal asset base. The grade "B-" reflects a cautiously optimistic outlook with room for strengthening liquidity and capital base as the business grows.

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2. Key Vital Signs

Metric	FY 2024 Value	Interpretation
Current Assets	£20,640	Indicates available short-term resources (cash, receivables). Healthy increase from prior years (£100).
Current Liabilities	£15,087	Short-term debts due within a year. Rising from nil, suggests initial operational costs and obligations.
Net Current Assets	£5,553	Positive working capital, a "healthy pulse," showing ability to cover immediate obligations.
Shareholders’ Funds	£5,553	Equity capital provided by owner/director. Positive and growing, reflecting retained resources.
Employee Count	1 (average)	Very lean operation, low overhead but also limited operational capacity.
Company Age	Less than 2 years	Young company, limited financial track record.

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3. Diagnosis: Financial Health Analysis

• Liquidity & Solvency:
  The company has a positive net current asset position (£5,553), meaning it can meet its short-term liabilities without distress. This is a vital sign of financial well-being at this early stage. However, current liabilities have increased from zero to over £15k in 2024, indicating growing operational commitments that must be managed carefully.

• Capitalization:
  Shareholders’ funds mirror net assets at £5,553, showing owner equity supports the company’s net asset base. This is a positive foundation but is relatively modest, reflecting initial funding and limited profit retention.

• Growth & Operational Capacity:
  The jump in current assets from £100 to over £20k is encouraging, suggesting either cash injection or receivables accumulation. However, the single employee count and micro status imply limited scale and operational reach.

• Risk Factors:
  Being a micro company with new establishment status, DATA 2.0 LIMITED is in the "startup phase," where risks include cash flow volatility, market entry challenges, and dependence on a single director who is also the sole significant controller (75-100% shares). The absence of audit and reliance on micro-entity provisions are standard but reduce external scrutiny.

• Industry Context:
  Operating in data processing and software development (SIC 63110, 62012) places the company in a dynamic but competitive sector. Success depends on technology innovation and client acquisition, which requires ongoing investment.

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4. Recommendations: Improving Financial Wellness

• Strengthen Cash Flow Management:
  Maintain a "healthy cash flow" by closely monitoring receivables and payables. Avoid overextending short-term liabilities to prevent liquidity strain.

• Build Capital Base:
  Consider additional equity injections or retained earnings to bolster shareholders’ funds, creating a buffer against unforeseen expenses.

• Expand Operational Capacity:
  Evaluate hiring or outsourcing to increase operational bandwidth, enabling business growth while controlling fixed costs.

• Implement Financial Controls:
  Even as a micro company, develop basic budgeting, forecasting, and financial reporting processes to detect early "symptoms of distress."

• Plan for Compliance & Growth:
  Keep up to date with filing deadlines to avoid penalties. As the business grows, prepare to transition from micro to small company accounting standards, including possible audit requirements.

• Risk Diversification:
  Minimise dependence on a single director by considering additional management or advisory support.

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